DirecTV Settles with States over Consumer Complaints

[Chris Blount]

DirecTV said it reached a voluntary agreement with attorneys general from 22 states, all of which consolidated their issues into a single multi-state Task Force, to settle allegations that certain company advertising and promotional efforts did not make clear disclosures to consumers.

DirecTV denied the allegations, and said it believes that at all times it has complied with advertising disclosure requirements and all applicable laws. The agreement with the task force also acknowledges that DirecTV did not violate any federal or state law, the satellite TV company said.

The company said voluntary settlements of such allegations, particularly in the multi-state task force environment, is a common business practice. DirecTV said it believes it's in the best interest of consumers and its business to amicably resolve such claims without costly litigation.

Most of the advertising that prompted the allegations was prepared by independent retailers and not DirecTV, the company said. Because of that, DirecTV said it has agreed to more closely monitor the advertising practices of the independent companies with which it does business.

Also as part of the agreement, DirecTV agreed to pay $5 million to the 22 states to cover the costs of the task force. No portion of the amount was designated as a fine, the company said. DirecTV also said it will implement a complaint resolution and restitution program for customers in the 22 states that were part of the agreement.

"Customer satisfaction has always been a top priority for DirecTV and we believe that implementing the agreement will further improve our consumer offerings," the company said in a statement.

http://www.skyreport.com (Used with permission)

[parttimedevotion]

Soooooo What was this task force charging D* With exactly. I mean obviousley D* advertised some false info but what, like free HBO, SHO, STARZ but said nothing about it being free for only 3MO. What was the false Advertisment?

[moonman]

Soooooo What was this task force charging D* With exactly. I mean obviousley D* advertised some false info but what, like free HBO, SHO, STARZ but said nothing about it being free for only 3MO. What was the false Advertisment?
---------
The 5.35 Million settlement was according to CNN news, in violation
of the FCC's "do not call list" in which they/companies that work for them,
contacted people on the FCC's do not call list, with sales pitches.:lol:

[homeskillet]

WASHINGTON - DirecTV Inc. will pay $5.35 million to settle charges that its telemarketers called households listed on the national do-not-call registry to pitch satellite TV programming, Federal Trade Commission officials said Tuesday.

Link >> http://news.yahoo.com/s/ap/20051213/ap_on_bi_ge/do_not_call;_ylt=Agw5A1KzDoyuEQoP_hiB6Cus0NUE;_ylu =X3oDMTA3b2NibDltBHNlYwM3MTY-

[Terry740]

---------
The 5.35 Million settlement was according to CNN news, in violation
of the FCC's "do not call list" in which they/companies that work for them,
contacted people on the FCC's do not call list, with sales pitches.:lol:
I am on the the do not call list and I have had DirecTV since they bought out Primestar.I have received at least twenty calls from companies wanting to sell me a dish system. It would have to be companies that do not have a list of DirecTV customers ,I think.

[DonLandis]

I've been on the do not call list for 8 months now and it just doesn't work. There are way too many violators out there. We got closed to 15 calls an evening by telemarketers before subscribing to the list and now it is no different. Maybe the news of these penalty rulings will help.

[moonman]

Statement from D*, concerning it's agreement with the FTC..see link..
http://phx.corporate-ir.net/phoenix.zhtml?c=127160&p=irol-newsArticle&ID=795387&highlight=

[cboylan3]

We are talking about two different things here.

1) A $5 Million settlement agreement with state attorney gerneral for false advertising.

2) The $5.3 Million fine by the FTC for "Do Not Call" list violation.

they should be addressed seperately not as one.

[moonman]

We are talking about two different things here.

1) A $5 Million settlement agreement with state attorney gerneral for false advertising.

2) The $5.3 Million fine by the FTC for "Do Not Call" list violation.

they should be addressed seperately not as one.
True, however the other discussion thread was closed.
http://www.dbstalk.com/showthread.php?t=49173

[01ds650]

I wonder how much the programming cost will go up now?

I'm sure "we'll" pay for it.

[cboylan3]

True, however the other discussion thread was closed.
http://www.dbstalk.com/showthread.php?t=49173


Chris - can we have the other thread re-opened so users can discuss each topic seperately instead of having it lumped into one?

thx

[shy007]

I bet Directv will stop calling now......

[obrienaj]

Is this different than the $ 5 million sttlement that Direct made with New York State yesterday? WBFO in Buffalo, NY announced 12/12/05 that Direct had reached a settlement with NYS over a class action suit that claimed subscribers did not get the channels they thought they had subscribed to.

[obrienaj]

DIRECT-TV Settles For Deceptive Advertising Practices
TALLAHASSEE - Florida and 21 other states including New York have reached a $5 million settlement with DIRECTV, addressing various allegations of misleading and deceptive advertising practices by the satellite television service provider. As part of the settlement, DIRECTV has agreed to pay restitution to consumers who were assessed a fee for terminating service before the "free programming offer" period expired, received fewer services than they paid for or were deceived by DIRECTV's advertising and sales pitches.

The settlement resolves allegations that DIRECTV's advertising was deceptive and misleading. The print ads made offers in big print that were modified or negated in extremely small, unreadable print that appeared at the bottom of the ads. In addition, the company allegedly trapped consumers in contracts that were not fully explained and often provided fewer services to consumers than originally promised, such as fewer channels in a package or blackout dates that prevented consumers from accessing features of their program package.

[SamC]

The federal do-not-call case and the state AG's case are two different things.

In the state AG's case DirecTV is charged with the same thing that all victims of state AG cases are charged with. Being a BIG and SUCCESSFUL company. The AGs extort a few mil, which in most state they don't turn over to the real state government but rather retain for things like "consumer education" (buying stuff with their names on it). Meanwhile the real job of AGs, which is to represent the state governments in legitimate legal cases generally goes undone.

And, of course, YOU AND I will pay for this.

Does anybody actual fell cheated by DirecTV?

[Newshawk]

The federal do-not-call case and the state AG's case are two different things.

In the state AG's case DirecTV is charged with the same thing that all victims of state AG cases are charged with. Being a BIG and SUCCESSFUL company. The AGs extort a few mil, which in most state they don't turn over to the real state government but rather retain for things like "consumer education" (buying stuff with their names on it). Meanwhile the real job of AGs, which is to represent the state governments in legitimate legal cases generally goes undone.

And, of course, YOU AND I will pay for this.

My guess is that the 22 states that were parties in this shakedown all elect their AGs. Also, why wasn't E* included in this shakedown? The answer is in this question... who has the deeper pockets?

[Chris Blount]

Chris - can we have the other thread re-opened so users can discuss each topic seperately instead of having it lumped into one?

thxSorry about that guys. The other thread has been re-opened:

http://www.dbstalk.com/showthread.php?t=49173

[UTFAN]

Bad PR hit for DirecTV, regardless of exactly what they did, or did not do.

Just about every major news website had the story plus a shot of one of their Dishes.

I'm sure they'll survive paying 10 million and change in fines, not all that much cash to a company that large but the PR hit was significant, and main hit is the aid and comfort it gave to their competition.

[crkeehn]

Do these deceptive practices have anything to do with Sunday Ticket? Last year a number of subscribers were up in arms over the blackout rules that Directv was required to follow due to their contract with NFL. The advertising implied that the subscriber would receive games that they in fact did not receive.